Lidl just grew its footprint by 45%
Lidl is reigniting its expansion in the United States by acquiring a regional grocer in the Northeast.
Lidl announced Friday that it is acquiring 27 Best Market stores in New York and New Jersey. The move allows Lidl, whose assortment is 90 percent private brands, to expand its regional presence and enter a new market in Long Island.
"Best Market has played an enormously positive role in the area, and we look forward to working closely with Best Market employees to build on that success," said Johannes Fieber, CEO of Lidl US. "We are excited to expand into many great communities on Long Island and across the New York City area and introduce more customers to our simple and efficient approach to grocery shopping, which will mean high quality and huge savings for more shoppers."
Privately held Lidl, known in Europe for its focus on low prices, opened its first stores in the United States in 2017 and had been planning to expand to 100 outlets within a year. But earlier this year a Lidl executive told a German newspaper that the company planned to scale back its U.S. openings. Lidl currently has 59 stores in the United States. The Best Market deal would increase its store footprint to 86.
The terms of the acquisition agreement were not disclosed, and it is expected to close over the coming months, the company said.
Lidl said it plans a step-by-step transition process that will begin next year and will involve the remodeling, reinvestment and reflagging of Best Market stores to converted Lidl stores. All Best Market employees in New Jersey and New York will have guaranteed employment opportunities with Lidl following the transition, the company said.
"Today is a great day for Long Island, our Best Market team, and our valued customers in New Jersey and New York," said Aviv Raitses, co-owner of Best Market. "Partnering with Lidl on this deal offers our employees a secure future with a growing grocer and continues the great tradition we started more than 20 years ago. We are delighted to be part of such a win-win and Best Market customers have something great to look forward to with Lidl."
Lidl operates about 10,500 stores in 29 countries. Its U.S. headquarters are located in Arlington County, Va.